Business · Energy & Commodities · 12 hrs ago
Indonesia changes oil and gas procurement rules to strengthen energy security
Indonesia’s 2026 presidential regulation changes how oil, fuel and LPG are procured to help protect the country’s energy supply.
It allows overseas purchases through government-to-government or government-to-business deals, carried out by a government-assigned public service agency.
State-owned energy company Pertamina says it will coordinate with government bodies and prepare its refineries, terminals and distribution network to carry out the policy.
Domestic crude oil and refinery output remain Pertamina’s priority, while imports can fill gaps in national supply.
The policy was discussed as officials assess the effect of Middle East tensions on energy security.
Pertamina says it will work with other agencies and stakeholders to keep fuel and LPG available to households and industry.
Indonesia’s Presidential Regulation No. 107 of 2026 changes the procurement framework for crude oil, fuel and LPG to strengthen national energy security.
Overseas purchases can be made through government-to-government or government-to-business arrangements, implemented by a government-assigned public service agency.
Energy Minister Bahlil Lahadalia said the framework allows Indonesia to choose which countries to source from.
Pertamina supports the regulation and says it is ready to carry out the government’s assignments and maintain supplies for households and industry.
Domestic crude oil and refinery output remain Pertamina’s priority, with imports intended to complement domestic supply.
- Who
- Indonesia’s government introduced the regulation; Pertamina says it will carry out the government’s assignments.
- What
- Presidential Regulation No. 107 of 2026 changes procurement arrangements for crude oil, fuel and LPG.
- When
- The articles were published on October 26, 2026; the regulation’s effective date is not stated.
- Where
- Indonesia. The press conference was held in Jakarta.
- Why
- To strengthen national energy security and help maintain energy supplies amid geopolitical tensions in the Middle East.
This story does not have two clearly opposing sides.
Pertamina executives and government officials discussed steps to address the effects of Middle East tensions on national energy security.
Pertamina expressed support for Presidential Regulation No. 107 of 2026 at a press conference in Jakarta.
- Regulation
- Presidential Regulation No. 107 of 2026
- Procurement methods
- Government-to-government and government-to-business
- Products covered
- Crude oil, fuel and LPG
- Implementation
- A government-assigned public service agency
- Pertamina priorities
- Domestic crude oil and national refinery output
3 sources
What people are saying
With this regulation, we are using a G-to-G and G-to-B system. That means we can now choose which countries to source from.
Pertamina fully supports Presidential Regulation 107 of 2026 as a step to strengthen national energy security amid global geopolitical dynamics.
Overseas procurement complements domestic supply to ensure the country’s needs are met.